Standard Chartered’s top analyst, Geoff Kendrick, is betting big on the U.S. Securities and Exchange Commission (SEC) giving the green light to Ethereum exchange-traded funds (ETFs) before this week ends. This could channel billions of dollars into Ether in the first year alone, potentially catapulting its price to $8,000 by the end of 2024.
Also Read: Fidelity Revamps S-1 Application for Spot Ethereum ETF
The SEC’s decision is expected to arrive soon, with key deadlines for spot ETH ETF applications from VanEck on May 23 and Ark Invest-21Shares on May 24. The timing aligns perfectly with Kendrick’s high confidence—an 80% to 90% chance—that these ETFs will get the regulatory nod.
Analyst Expects Massive Inflows Into Ethereum
Kendrick’s prediction, if accurate, will have some major financial implications. Reportedly, he stated:
“After approval, we estimate that spot ETFs will drive inflows of 2.39 to 9.15 million ether in the first 12 months after approval. In U.S. dollar terms, that equates to roughly $15 billion to $45 billion.”
This influx mirrors the impact seen with Bitcoin ETFs, validating Kendrick’s projections. Moreover, Kendrick believes that if spot Ethereum ETFs are approved, the altcoin could keep pace with Bitcoin. With Bitcoin expected to hit $150,000 by the end of 2024, Ether’s value could soar to $8,000, maintaining the current 5.4% price ratio between the two cryptocurrencies, according to the analyst.
Experts Hike Expectations of ETF Approval
Kendrick’s forecasts don’t stop at 2024. He expects even higher peaks for both Bitcoin and Ethereum by the end of 2025. According to Standard Chartered’s estimates, Bitcoin could reach $200,000, implying an Ethereum price of $14,000. These projections are consistent with the bank’s previous targets for Ethereum, reinforcing their bullishness on the top altcoin.
Also Read: Ethereum Targets $4,000 as Odds of Spot Ether ETF Improve
Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om
— Eric Balchunas (@EricBalchunas) May 20, 2024
Ether’s price surged late Monday (May 20), reflecting increased optimism in the community, thanks to the anticipation of ETF approval. This spike also lifted other major crypto tokens, making way for the bulls to take control. This market sentiment is also shared by acclaimed Bloomberg analysts James Seyffart and Eric Balchunas, who raised their odds of a spot ETH ETF approval to 75%, up from a mere 25%.
ETF Issuers Have Been Strategizing
The SEC’s decision on Ethereum ETFs coincides with deadlines for some of the issuers, as aforementioned. Meanwhile, Fidelity Investments has revamped its S-1 application to better suit SEC’s approval odds, specifically when it comes to staking the Ether tokens that will underpin the product.
As for Grayscale, Seyffart revealed that the company has filed an updated 19b-4 for its Ethereum Mini Trust. Grayscale believes that approving the Grayscale Ethereum Mini Trust will benefit current ETHE shareholders. An approval means they’d keep the same exposure but with the bonus of a lower fee spread across both products.
This is actually an initial 19b-4 for Grayscales mini Ethereum trust. I don’t think this will be included in first wave of potential approvals, said James Seyffart.
Cryptopolitan reporting by Jai Hamid
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